The highest valued alternative that must be given up in order to choose an option is called
a. opportunity cost.
b. utility.
c. scarcity.
d. disutility.
A
You might also like to view...
The purpose of a Clarke tax is to
a. give people an incentive to truthfully reveal their preferences for a public good. b. raise enough revenue to pay for a public good. c. give producers an incentive to supply nonrivalrous public goods in socially efficient quantities. d. prevent the dissipation of rents that would occur with a nonexcludable public good.
The short run sequence of events following an unanticipated shift to a more expansionary monetary policy would be lower interest rates followed by dollar
a. depreciation, and an increase in the current account deficit. b. depreciation, and a decrease in the current account deficit. c. appreciation, and an increase in the current account deficit. d. appreciation, and a decrease in the current account deficit.
When the money market is drawn with the value of money on the vertical axis, an increase in the price level causes a
a. shift to the right of the money demand curve. b. shift to the left of the money demand curve. c. movement to the left along the money demand curve. d. movement to the right along the money demand curve.
What is mercantilism? What are the draw backs of this doctrine?
What will be an ideal response?